Petra signs a check payable to Quentin,who indorses the back,gives it to Regional Credit Union (RCU),and receives cash. The transfer of the check from Quentin to RCU is
A)an assignment.
B)a negotiation.
C)a payment.
D)a sale.

Question

Quizplus · Accepted Answer

This is a clear example of negotiation, where the payee (Quentin) endorses the back of the check and transfers it to the Regional Credit Union (RCU). RCU then becomes the new holder of the check and can receive the amount from the payer's (Petra's) account.

Petra Signs a Check Payable to Quentin,who Indorses the Back,gives